Home Loan After Retirement in the UAE

Purchasing a home after retirement can often prove to be a financial burden. In such cases, procuring a mortgage loan can help you easily get your desired property without facing any major financial stress. However, although a few banks in the UAE offer home loans to retired persons, not every retiree is eligible to avail of such mortgages.

In order to qualify for mortgages in UAE, a retired person would also need to fulfil certain criteria, just like how a regular applicant would be required to. In this article, we will go through some tips about how to get a home loan for a retired person, the documents required, and the eligibility criteria to obtain a mortgage loan in UAE after retirement.

Top Tips to Get Home Loan in the UAE After Retirement

Generally, getting loan finance to buy your dream home can be challenging considering the massive loan amount and other such factors. On top of that, retired individuals may face more hassle in getting a home loan due to concerns about their financial stability and additional requirements that old age brings.

With that said, keeping a few points in mind can certainly boost your chances of getting approval for home loan applications in the UAE -

1. Maintain Your Credit Score

One of the crucial determining factors for the approval of home loans in the UAE is the credit Score. Whether the borrower is working or retired, it is always essential to possess a good credit score. In the UAE, banks tend to easily grant mortgages to individuals with a credit score of 710 or more, as this score falls into the ‘high’ category and indicates a positive and responsible financial history.

Compared to other loans and credit cards, credit scores have higher importance with respect to the approval or rejection of home loan applications. As the loan amount is high and the repayment tenure is also long, banks prefer to provide only individuals with high or very high credit scores, given their creditworthiness.

Even young applicants with low credit scores may find it difficult to get approval at feasible rates. Credit score, thus, becomes even more of a necessity for older applicants who may face more challenges concerning income and other expenses, which can affect loan repayment as well. 

Individuals often have a misconception that maintaining a good credit score is challenging. With proper management of credit cards, debts, and other bills, you can easily boost your credit score. One of the prime factors influencing your credit score is bill payment, with your bill payment history for the past 5 years being considered to evaluate your credit score.

You should be punctual with all bills and not just the credit card ones. The same punctuality must also be maintained for the repayment of loans and dues. Moreover, you can avoid submitting multiple applications for credit cards or loans or verifying your credit score frequently, as both these can decrease your credit score.

2. Know Your Eligibility Criteria

Whenever browsing through products related to a home loan for retired persons in the UAE, start by checking the eligibility criteria. You may or may not qualify for all mortgage loan products offered by different banks. To know whether or not you are eligible for a mortgage loan in UAE, visit the official website of the bank or speak to one of the bank professionals. 

3. Include a Co-Applicant in Your Mortgage

It is always a wise decision to add a co-applicant when applying for a home loan after retirement. Including a co-applicant in your home loan application is not only cost-effective but also increases your chance of getting a mortgage application approved by the bank, as the combined income would be considered for the repayment. You can add any co-applicant such as a spouse or children who are currently working.

4. Opt for a Secured Loan

As a retired individual, taking a secured loan for your mortgage is a wise decision. You can keep the property being purchased as collateral. In case you fail to repay your monthly instalments, the property goes into foreclosure, i.e., seized and sold by the lender to get the due loan amount back.

What are the Eligibility Criteria to Obtain a Mortgage Loan in UAE After Retirement?

The general eligibility criteria to apply for a home loan after retirement are as follows –

• The applicant must not be above 65 years of age
• The applicant must be a UAE national or an ex-pat 

Home Loan Eligibility in UAE

What are the Documents Required to Get Home Loan After Retirement in the UAE?

Here is a list of documents that may be required to obtain a mortgage loan in UAE for both nationals and ex-pats –

• Copy of your valid passport
• Copy of your visa (if applicable)
• Original Emirates ID
• Valid residential proof
• Previous 3 or 6 months’ personal bank account statement

Which Bank Offers Home Loan in UAE for Retired Individuals?

You can find the following option to get a home loan in UAE as a retired individual –

1. Emirates NBD Home Loan

Emirates NBD offers a home loan product exclusively for retirees in the UAE.

Here are its salient features and benefits –

• The loan product is available for all retired UAE nationals and ex-pats 
• The processing fee charged on the loan amount is 1% (non-refundable)
• Borrowers can opt for free partial settlement of up to 20% per annum
• The borrower’s ‘Life Insurance’ would be 0.05% per month on the outstanding loan amount
• For property insurance, Emirates NBD charges 0.01% fee per month on the property value

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